By buying an index fund, you can roughly match the market return with ease. But many of us dare to dream of bigger returns, and build a portfolio ourselves. Just take a look at InterContinental Hotels Group PLC (LON:IHG), which is up 71%, over three years, soundly beating the market return of 2.0% (not including dividends).
So let’s investigate and see if the longer term performance of the company has been in line with the underlying business’ progress.
See our latest analysis for InterContinental Hotels Group
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction…